By Frank Kamuntu
The Bank of England’s survey found an improved economic outlook had also boosted demand for corporate credit in the second quarter. Lenders anticipated demand for corporate credit to increase in the coming quarter with the biggest rise expected from large firms.
The availability of corporate credit, however, was expected to remain little changed.
Royal Bank of Scotland (RBS) has commissioned a review of its lending to small businesses, responding to concerns of a shortage of finance in a sector seen as vital to Britain’s economic revival.
The government-controlled bank is Britain’s biggest lender to small businesses.
The British government is concerned that poor access to finance among smaller firms may thwart a sustainable recovery from the country’s worst slump in decades.
Separate data from the Bank of England earlier this week showed lending to non-financial businesses fell by a net 1.27 billion pounds in May. Lending to smaller firms dropped by 452 million pounds.
